MicroStrategy Halts Bitcoin Purchases Ahead of $563M Preferred Stock Issuance

After snapping up bitcoin almost weekly for three months, MicroStrategy (NASDAQ: MSTR) abruptly paused its purchases in late January—which coincided with a noticeable dip in the coin's price.

After snapping up bitcoin almost weekly for three months, MicroStrategy (NASDAQ: MSTR) abruptly paused its purchases in late January—a move that coincided with a noticeable dip in the coin’s price.

In a post, co-founder and executive chairman Michael Saylor confirmed that between January 27 and February 2, MicroStrategy refrained from purchasing any new Bitcoin and did not raise additional funds through its ongoing at-the-market equity offering. The same was also declared in the company’s recent SEC filing.

MicroStrategy $MSTR halted all Bitcoin purchases this week, ending 12 weeks of purchases. https://t.co/yHf8YGVFqU pic.twitter.com/GUMQEPv8aD

Though Saylor did not explicitly explain why, the announcement came only days ahead of a major issuance of 8% Series A Perpetual Strike Preferred Stock, due to close on February 5. The new offering is expected to raise $563.4 million in net proceeds, which the firm says may later be used to acquire more bitcoin.

The new stock issuance, traded under the proposed ticker “STRK,” offers an 8% dividend and has embedded conversion rights that could dilute shareholders if exercised under certain conditions. But the firm argues that mixing equity sales, convertible notes, and now preferred shares, gives it the flexibility to seize bitcoin-buying opportunities while still meeting ongoing operational needs.

Bitcoin, which had hovered above $100,000 in late 2024 before sliding into the mid-$90,000 range, experienced further downward pressure after the buying spree pause. Without the “Saylor bid,” as some call it, short-term sentiment turned more cautious, and bitcoin saw a noticeable dip, dropping below $95,000 on some exchanges.

Currently, bitcoin is again hovering near the $100,000-mark.

The disappearance of the Saylor bid is starting to show on the bitcoin chart. (Horizontal line represents their previous bid).

$MSTR is getting so desperate it is promising to repay $100 with 8% interest, in exchange for only $80 up front. These preferred shares also give away… https://t.co/t26cPaXeOV pic.twitter.com/3AFbYcKTKc

Saylor’s bitcoin acquisition strategy started in mid-2020. By early February 2025, the company has accumulated 471,107 bitcoins at an average price of roughly $64,511 per coin.

Information for this briefing was found via Decrypt and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.